Orthogonal’s Round Is
CLOSING On FEBRUARY 22nd
After raising $1,111,000 from over 555+ investors, we're closing our round on 2/22. This may be the last chance to invest in Orthogonal at this valuation.
If you'd like to invest, the Orthogonal profile has our story and recent stats.
100% Ownership In MauiRaw 2018
First Investor In Betterment>Valued 1B+
Incubator Of First Ayurvedic Spa In Major Hotel Chain
First Holding Company to Disrupt the 5 Trillion Dollar Life & Plant Sciences Industry
Empowering the Movement to Legalize Psilocybin
First Investors in RideCell, Vidyard, Talkable, Meadow, and many more massive Disruptive Tech companies.
Controlling IP in the Plant & Life Sciences Space>Cannabis, Hemp and Plant Foods.
For any questions, contact Me, David Nikzad, at firstname.lastname@example.org
O R T H O G O N A L
A Socially Conscious Investment Opportunity For
POSITIVE CHANGE In Our World.
Copyright © Orthogonal Thinker, Inc. All Rights Reserved. No part of this report may be reproduced or transmitted in any form whatsoever, electronic, or mechanical, including photocopying, recording, or by any informational storage or retrieval system without expressed written, dated and signed permission from the author. You may not use this report as web content nor sell, give away, or re-package this report in any form. This report is for your own personal use and may not be distributed. This is copyrighted material. You do not have permission to resell this report nor do you own any rights to this report.
Legal Notices – The information presented herein represents the views of the author as of the date of publication. Because of the rate with which conditions change, the author reserves the right to alter and update their opinions based on new conditions. This report is for informational purposes only and the author does not accept any responsibilities for any liabilities resulting from the use of this information. While every attempt has been made to verify the information provided here, the author cannot assume any responsibility for inaccuracies, errors or omissions. Any slights of people or organizations are unintentional.
Disclaimer - This report does not make any representation whatsoever that investing in Orthogonal Thinker might be or is suitable or that it would be profitable for you. Please realize there are risks involved with any investment, including Orthogonal Thinker, and consult an investment professional before proceeding. Should you decide to invest in Orthogonal Thinker, it is your decision. See additional risk disclaimers and forward- looking statements on page 36 of this report.
MEET THE AUTHOR
David Nikzad, Founder & CEO of Orthogonal Thinker, is a visionary for our times. He is likewise an “investor savant” and a backer of the most disruptive entrepreneurs. With a keen eye for winning ideas, he has an impressive track record of investing success.
David’s ability to find companies which become leaders in their respective industries is his gift. He was one of the first investors in Betterment, which now manages $15 billion in assets. He is also an original investor in several other Y Combinator companies, and co-founder of Reinmkr Satsang, a Venture Capital firm.
All told, David has invested in 100+ start-up and emerging companies over the last twenty years. His investing philosophy goes beyond the promise of great financial return. He looks at a company’s potential to do good for the people and the planet. A true rainmaker he is.
PRELUDE TO A REVOLUTION: THE NEW STANDARD OF FARMA
When you think of the world you want your children and grandchildren to live in and grow up in, what comes to mind?
Is it more useless apps which drain your energy and attention... Consuming products which disempower rather than truly empower...
Eating processed foods which dull the spirit, deaden the mind and weaken the body...
Or relying on prescription meds, many of which are proven to do more harm than good?
If you’re reading this report right now, I’m guessing this is not the world you envision.
And yet... people often invest in companies which do one or more of these things.
In all candor, I too have been guilty of this in times past. Early in my V.C. and investing career, I wasn’t always thinking about legacy or making the world a better place. Like so many investors, I was focused primarily on the numbers.
Don’t get me wrong... being able to build and sustain a profitable company is a very important factor. As is being able to execute on your vision and business plan.
At the same time...
I believe when you focus on creating real value and solve real problems...
Which helps people to live life to the fullest degree possible...
And when you operate with a high level of integrity...
The profit will always come. I would even call this is a universal law.
Over the past 20 years I’ve shifted my philosophy on how I invest and the types of companies I invest in.
Beyond this, my investment approach has become a way of life... which is why I created my holding company, Orthogonal Thinker.
Reflecting back, I’ve been blessed to invest in some amazing companies over the years.
I was one of the first investors in several Y Combinator companies... and I have a lifetime seat at the table there. This has allowed me to participate in a lot of great companies.
Among them, I was one of the first investors in both AirBNB and Betterment. While these are certainly great investments...
I see a new revolution on the horizon over the next 10 years for those in the know...
And especially for those who share the same investing values and philosophy as I do.
I will be sharing these investing values with you in this report. Let’s explore if we are worthy mates. Truth is, it wouldn’t be fair to either of us if we go about this any other way.
You see, my investment strategy and philosophy has become more than just a way to make money.
It’s become a way to build legacy...and to leave our world a better place than when I found it.
One way I do this is through my money... with an important distinction.
I believe money carries a frequency of energy. In other words... every time you invest your money... it carries your voice, your vote and your intention.
With this in mind, I invest as an expression of the values I live by...
In companies which embody these values... And these values guide my investing decisions.
With this in mind, I invest as an expression of the values I live by...
In companies which embody these values... And these values guide my investing decisions.
For me and my business partners, Orthogonal Thinker has become a way of life...
Its own high-frequency of energy... and a socially conscious holding company. Our portfolio of companies is built on a singular vision:
To help heal and nourish the body, mind and soul...
To empower individual lives...
And to share in the profits from the change we help create in our world. So what are these values I am talking about?
I call it the Orthogonal Creed. It is a way of life built on the values of...
Connection Empathy Self-Love Authenticity Empowerment Stewardship Service
High Frequency of Energy Bold Vision
Lead From The Front
These are the core values which inform my investing decisions. What’s more, these are the values we look for in the companies and the leaders we are investing in.
Throughout this report you’ll hear more about these investing values.
You’ll also discover exactly what I’m investing in over the next 10 years...
Why I’m heading along this road...
And how you can join me on what promises to be the adventure of a lifetime.
In fact, it’s more than an adventure. It’s an opportunity to go deep and raise your personal vibration...which helps raise our collective vibration as well.
It’s about self-care for the body, mind and soul. It’s about real companies, with real products, ideas and solutions...
Which create real value...
And which bring real change to people and to our shared world.
This includes everything from topicals and tinctures, to vapes and buds, to natural whole foods, hemp-derived products and empathogenic plant medicines.
I call this “The New Standard of Farma”. It’s where we think carefully about what we put on our bodies and what we put in our bodies...
As well as how we create these products, foods, supplements and medicines to begin with.
Orthogonal Thinker will be at the forefront of what I believe will be the biggest investment opportunity of the next decade and beyond...
And I’m inviting you to be a part of this movement.
In essence... we are building a Socially Conscious Holding Company with a primary focus on Life and Plant Sciences. Our vision and focus is twofold...
We invest in leading edge formulation technology and innovative solutions which empower, heal, nourish, soothe and support the body, mind and soul.
We help incubate, accelerate and bring to market visionary solutions to critical challenges across the health, wellness and sustainable development ecosystem.
Over the rest of this report I’ll share how you can take the ride of a lifetime with us. This ride is both as an investment opportunity as well as an opportunity for personal growth
Before we start, I have just one question for you... are you ready to help us create The New Standard of Farma... and change how we cultivate health, wealth and happiness?
If so... let’s begin with a look at The 3 Protocols of Socially Conscious Investing.
THE 3 PROTOCOLS OF
SOCIALLY CONSCIOUS INVESTING
Is It Good... Or Is It Great?
I often get asked by investors of all different skill levels... “What makes a good investment?”
My immediate answer may surprise you because I’m not looking for good investments. I’m looking for great investments...
And this means I’m looking for potential returns of 10X to 100x or more.
Now many people in the Silicon Valley circles I’ve run in over the years call these kinds of companies “Unicorns”.
When you find one, you join a very rare club.
These are companies which create billion dollar valuations.
At the same time, I’ve seen many of these Unicorn companies do terrible things... all in the name of profit.
So let me set the record straight...
This is not what I consider a great investment to be.
Here’s the thing...
There are a million and one ways to make money... and there is no shortage of good ideas.
That being said... there is a shortage of companies out there which fulfill these 3 Protocols of Socially Conscious Investing.
For me, this is where the rubber meets the road. A company which falls short on any of these three standards is a company I will not invest in.
Let’s now take a brief look at each one...
SOCIALLY CONSCIOUS INVESTING PROTOCOL #1: HIGH FREQUENCY OF ENERGY
The first Protocol takes me back more than 10 years ago. I remember the day as if it were yesterday. It was during the financial crisis of 2008.
I had scribbled the idea of Reinmkr Satsang on a piece of paper. Reinmkr was my first private investment company which I co-founded with my partner Jason Hobson.
Central to this idea was to invest our own money in a portfolio of companies... each of which would resonate with the investing values I hold dear.
More specifically... I would look for companies where the founders operate in high regard...
Where the founders strive to live their highest truth in each moment... And where the vision behind the company vibrates at a high frequency of energy.
In other words... an energy of higher consciousness, authenticity and truth.
It’s also an energy of purpose and unlimited possibility. To feel and sense this energy is to know something special is happening.
Most investors never get to experience this frequency of energy because they aren’t in the world of venture capital.
They aren’t around startup companies... and they rarely if ever interact with the founder(s).
As humans, I believe we each emit a unique frequency of energy.
In fact, this isn’t just my belief...
Quantum physics has proven it.
We are more than our physical bodies.
Our “beingness” doesn’t end at our skin line.
We each have an energy field around us. This energy field connects us to other living beings and to the universe around us as well.
In essence, we are all interconnected... and this brings us back to the heart of Socially Conscious investing.
You see, for me to invest in a company I must first have an energetic connection with the founder. I must also connect to their vision.
I explain it like this...
Do you remember playing in the sandbox with your friends when you were just a kid?
If not, imagine in your mind’s eye right now doing just that. For me, it was a lot of fun. My childhood friends and I created some pretty cool stuff as we discovered how to shape and mold the sand together.
In a similar fashion, when I think about investing into a company...
I think about whether or not I want to play in the Sandbox of Life with the founder(s). Do they aspire to be conscious human beings?
Does our energy mirror each other in a positive, dynamic way?
Are they disciplined in thought and action?
Can they execute at a high level?
This is important. I want a true energetic connection with every founder... the kind where we can play together for 10 years and more.
This gives me confidence to invest in them, their vision and the company they are building.
SOCIALLY CONSCIOUS INVESTING PROTOCOL #2: EITHER YOU CAN OR YOU CAN’T
I never invest in companies and founders who make conditional statements.
Conditional statements may work well in math and science. In my experience, however, they don’t work well in startups and early stage companies.
To me a conditional statement from the founder is a sign of indecisiveness. This is someone hedging their outcome and results.
I’m looking for founders who are willing to go all-in on their vision.
They are willing to risk their own money, time, social capital and reputation to build their company.
Their commitment, focus and belief is both unassailable and unstoppable. Their drive is fueled by a fierce inner conviction... and an immovable faith in their dreams.
What’s more, I look for them to have (1) a clear roadmap on how they are going to achieve their vision and (2) a very precise plan for execution.
I’ve also observed that founders who make conditional statements early on rarely have a great team behind them. The absence of a skillful, passionate and committed team leaves too much room for error in executing on the company’s vision.
A great team is vital... and is one of the reasons why I would invest in a great company.
One more key point around this protocol, and allow me to be direct.
If there are limiting beliefs or doubt held in the mindset of the founders...
And if they aren’t self-aware to do the inner work necessary to evolve and grow...
SOCIALLY CONSCIOUS INVESTING PROTOCOL #3: LEAVE THE WORLD A BETTER PLACE
Then I don’t want to be a part of the deal. From my point of view, it would be an investment likely doomed from the start.
I call it having emotional intelligence.
I want to invest in someone who believes the impossible is possible.
I call this my “F$&K Yes” philosophy. After I want to meet with a founder I want to say...
“F$&K Yes! This company is going to be my next Unicorn.”
I invest only in what I personally use or will use. Anything else is out of integrity. This is my baseline for any company I invest in and support.
As I shared in the prelude... I believe in leaving the world a better place as a result of my business and investing endeavors.
With this in mind, I have a high standard for the products I use in my every day life. intention is to live in harmony with nature and nature’s laws.
Flowing from this... my investing philosophy is simple. I choose to align with companies creating products and solutions I either already use and/or will use in the future.
In other words... I invest in the companies whose products I regularly eat, drink, use topically and consume... and which benefit me, my children, my family and my world.
These are companies which are helping people and not harming them or our planet...
These are products which nourish and heal the body, mind and soul... And ideally, these are companies whose mission includes giving back.
Taken together, these 3 Protocols for Socially Conscious Investing guide my decisions.
While this may be the “road less traveled” for investors focused solely on financial returns...
The bigger rewards (on both a personal and financial level) come from being just stewards of our resources... and investing wisely in companies which contribute to our common good.
Thinking back on my investing journey, I have numerous stories of meeting founders who embody these principles and protocols.
For example, nearly a decade ago while attending the TechCrunch Disrupt conference, I met Jon Stein, the founder of Betterment.
I felt an immediate high frequency of energy... so I contacted him and arranged to meet at a coffee shop in New York City.
After our first meeting I committed immediately. Everything lined up. I invested in both the Seed/Series A and Series B rounds without hesitation. Today, Betterment has $15 billion under management and has a valuation north of $1 billion.
Along the way, I’ve had several opportunities to cash out at a much higher valuation than I originally invested at... however each time I decided to hold on to my shares.
You see, when I commit... I commit. It’s a long-term wealth and legacy- building strategy which produces both personal and financial dividends. To my knowledge Jon and I are the only ones who haven’t sold any of our shares.
The crown jewel in our portfolio is a company called Maui Raw. This company creates the most delicious Vegan dips and spreads from the Macadamia Nut.
We own 100% of this company... and big things are planned in the new year as we roll out across the nation.
Other companies in which we own equity include Talkable, Vidyard, Quartzy, WeFunder, RideCell and a company based in San Francisco called, Meadow.
Meadow is building a billion-dollar Cannabis distribution and Point of Sale platform.
These next couple of years will be big for Cannabis and Hemp as legalization comes to dozens of new states... and at a Federal level as well. Meadow is poised for hyper growth.
So many stories... so many great friends.. so much good we are creating in the world.
On the timeline, Orthogonal Thinker was formed in 2016 as a holding company to incubate and deploy companies like those just mentioned.
These companies (and others to come) will leave the world a better place... and positively impact billions of people around the globe. Today... we are ready to move into the next decade of investing in great companies.
This is where your journey with me can begin... and I invite you to take the ride together.
MY CORE INVESTMENT STRATEGY FOR THE NEXT 10 YEARS: LIFE AND PLANT SCIENCES
As I’ve outlined above, I invest based on a set of protocols and values which guide all my investing decisions. These are my true north... and I don’t deviate from what is true for me.
Going forward... and as CEO and Co-Founder of Orthogonal Thinker... we will invest and deploy capital into three primary sectors over the next 10 years. We aren’t limited to these three areas, however, these areas will be our core strategy and focus.
Before I tell you more, allow me to be vulnerable with you for a moment.
At the age of 3 years old I was diagnosed with a form of Asperger’s disease, which is a form of Autism. If you have kids, you may imagine how challenging this was for my parents. My mom is a board certified psychologist at Cedar Sinai... and it was especially difficult for her.
From that point until around the age of sixteen I was put on a number of different prescription meds, including Adderall. Let me tell you... these are not good things to put into your body. I know firsthand what taking highly addictive and harmful drugs can do.
Sadly, the prescription drug crisis we face today is only going to get worse. We urgently need to shift from illness-based healthcare to
For me this has been a very personal journey. I now think long and hard about the kinds of companies I invest in.
Truth is, this is one of the reasons I’ve been such a big proponent of Cannabis legalization for so many years.
My experience with medical marijuana has been nothing short of a miracle in terms of how it has helped me to manage my condition.
This journey has also led me to be there when the industry began more than 12 years ago. Along the way, I helped start the first legal dispensary in California.
As with many pioneers, I caught a lot of flack from family and friends. At the same time I had a vision Cannabis would be one day be legal in California, across America and eventually the world.
It was a big vision and a risky play... however what I saw 12 years ago is now coming to pass. What’s more, many of those same people who criticized me for my stance now wish they had invested with me
12 years ago.
Today, both Cannabis and Hemp are going mainstream. They are on track to go from being illegal substances to being legalized federally. Just as important, both have gone from being a black market industry to now a potential trillion-dollar industry.
Here’s the thing... there is so much opportunity still left untapped. At the same time, we are at the forefront of another revolution... which brings me to the purpose of this report.
The three primary areas of investment focus for Orthogonal Thinker each come under the Life and Plant Sciences space.
I’ll share the three areas here first and then I’ll briefly discuss each one:
Whole Foods — This covers natural food production, innovation and distribution.
Cannabis | Hemp | CBD — This covers the whole spectrum of products and solutions.
Farmland and Cultivation
Formulation and Extraction Technologies Product Development and Consulting Services Licensing deals and Joint Ventures Distribution and Point of Sale
Psilocibin.com and Mental Health — This will be an Internet portal for scientific and academic research, scholarly content and discussion along with mental health news and updates. The mental health industry is in dire need of innovation.
I’ve lived on the island of Maui full time since 2011. If you’ve ever been to Maui then you know the vibe and culture is all about the land. We call it “Mana” ... which speaks to a spiritual energy of power and strength held in the land.
We have some of the best soil for growing Non-GMO, all natural whole foods and plant medicines like hemp and cannabis. With the Farm Bill just passing it opens up a world of opportunity for growing hemp on Maui.
In addition, our soon to be Global Brand, Maui Raw (100% owned by Orthogonal Thinker), is poised to grow exponentially in 2019.
So why are we investing in Whole Foods companies over the next 10 years?
First and foremost, we believe eating the right kinds of food is the ultimate healer. At the same time, the wrong kinds of food is also the leading cause of chronic disease in the U.S.
Consider the following...The U.S. health epidemic of chronic disease is being discussed to a significant degree amongst our lawmakers in Washington D.C.
That being said, most of the healthcare talks of the past have been about the cost of treating disease... rather than on the potential economic benefits of preventing disease.
Today it’s becoming increasingly clear... changes in diet and lifestyle could prevent many of the chronic diseases driving up the nation’s health care costs. Moving from an illness-based culture to a wellness-based culture has never been more vital to our nation’s well-being.
In a new Milken Institute report, U.S. health care costs for chronic diseases such as heart disease, cancer, diabetes, and Alzheimer’s disease totaled $1.1 trillion in 2016.
When lost economic productivity is included, the total economic impact was $3.7 trillion. This is equivalent to nearly 20 percent of the U.S. gross domestic product.1
The fastest way to lower costs... or at least to slow the upward spiral... is to reduce the number of Americans who carry excess weight, smoke, or drink too much alcohol.
The statistics are shocking. The number of American adults classified as obese increased from 13% in 1960 to almost 40% in 2016. Another 33% are overweight.
What’s more, research has established a strong link between obesity and chronic diseases such as heart disease, kidney disease, and several types of cancers.
Unless Americans make changes in their lifestyles and the food industry changes the way food is prepared and marketed... the number of people with chronic diseases and the cost of treating them will continue to rise.
We believe like Hippocrates the great Greek physician and father of modern medicine once said... “Food should be thy medicine and medicine thy food”.
People are beginning to wake up to the fact that food is either healing them and extending their life or killing them. As a result, the organic food movement has taken off. Since 2008 organic food sales have increased from $20.3 billion to $45.2 billion.
Currently, one of our main areas of focus is on plant-based foods which are designed to replace dairy products. The potential in this one area is enormous.
US retail sales of plant-based foods rose 20% to $3.3 billion in the first half of 2018, according to Nielsen data compiled for the Plant Based Foods Association (PBFA).2
This same report found that sales of plant-based milk products were up 9% to $1.6 Billion, while cow’s milk sales were down 6%. These foods now comprise 13% of total milk sales.
Our Maui Raw brand is poised to grow in this category. In fact, we’ve seen so much growth on the Hawaiian Islands that we currently can’t support the demand.
As such, we are in the process of signing a Joint Venture deal with a heavyweight in the Whole Foods industry to move production and distribution to California.
This will allow us to supply all of Hawaii and the West Coast of the U.S. in multiple chains such as Whole Foods, Sprouts, Trader Joes and many others. We plan to take Maui Raw nationwide in all of these same retailers. As to the financials... Maui Raw had revenues of 250K in 2018... and we project revenues of $1.3 million in 2019. This is just the beginning.
In addition, we will have the opportunity to get industry data which will give us a major competitive advantage. This data will help Orthogonal Thinker to invest in other Whole Foods companies which are seeing enormous growth... and take our piece of the action.
Ultimately, Maui Raw will be our global brand for everything we do in the Whole Foods space. Our mission is to help people make a conscious choice to put the right foods in their body and see the amazing benefits we know can happen.
The stats reveal to us that the Whole Foods industry is catching a big wave of steam and will continue to grow over the next 10 years. It’s abundantly clear that new ways need to be found to curb the chronic health epidemic we are seeing in the U.S.
Orthogonal Thinker intends to ride this wave, just like we were in front of the Cannabis wave during these past 10 years.
Cannabis, Hemp and CBD
The rise of the Cannabis, Hemp and CBD markets across the US and the world is one of the greatest investing opportunities of the 21st century.
I’ve been a pioneer in these markets for over a decade. I’ve seen the good and the bad across all sectors of the industry. Fortunately, bad actors are being “weeded” out as regulations and compliance take center stage.
At the same time, companies with high-quality products, solid business plans and competent teams are set to prosper over the next 10 years and beyond.
The numbers are enough to whet the appetite of any visionary and socially conscious investor. According to Arcview Market Research and BDS Analytics, spending on legal cannabis worldwide is expected to hit $57 billion by 2027.
The adult-use (recreational) market will account for 67% of the spending while medical marijuana will take up the remaining 33%.3
The largest group of cannabis buyers will be in North America, going from $9.2 billion in 2017 to $47.3 billion in 2027. The rest of the world is expected to see significant growth as well... going from $52 million spent in 2017 to a projected $2.5 billion in 2027.
We see end from the beginning... and Orthogonal Thinker will be deeply involved in bringing plant medicines to the mainstream.
This will include Cannabis and CBD along with other Empathoceutical products we either develop ourselves... or bring to market through companies we acquire equity in.
Now before I tell you more about our game plan in this arena, allow me to share some historical perspective. I believe this will help you appreciate the opportunity at hand.
As recent as the 17th to19th centuries, cannabis was used regularly in both Western and Eastern medical practices. It was as accepted herbal remedy for a host of conditions.
In the early 1600’s, hemp farming became as popular as tobacco farming in the United States Colonies. It was grown more for its commercial value than for anything else.
The fibers were used for paper, clothing and ropes as well as thick, durable sails for the maritime industry. Hemp seed oil was used for paints, varnishes, and soaps.
Ironically, hemp was so essential to the early American colonies that all settlers were required to grow it. Until 1769, you could be jailed in the Colony of Virginia for refusing to grow hemp.
And until the early 1800s, farmers were allowed to pay their taxes with hemp. One more interesting tidbit... George Washington grew hemp at his Virginia plantation for 3 decades, primarily for industrial and
At the same time, several of his diary entries indicate he was growing cannabis with a high THC content as well. Historians have speculated this was to alleviate the pain of chronic toothaches. In other words, he was using medical marijuana... centuries ago.
The bottom line in all of this... the negative stigma around cannabis did not exist in the early years of the United States.
Fast forward to today and the tide is quickly turning. Cannabis, Hemp and CBD are taking their rightful place back in our herbal medicine cabinets.
As of November 2018, 10 states and the District of Columbia have passed adult-use laws. In addition, the majority of states have of some type of medicinal cannabis law.4
Around the globe, Uruguay and Canada have legalized recreational marijuana on a national level. Australia, Colombia, Germany, Greece, Poland and Zimbabwe along with more than 30 countries have passed medical cannabis laws. These next 2-3 years will be pivotal.
It’s a perform storm of investing opportunity which Orthogonal Thinker plans to cash in on... and which you have the potential to can cash in on too.
The great game changer was the signing of the Farm Bill at the end of 2018. This bill removed hemp from the federal government’s list of controlled substances. This paves the way for hemp to become a major agricultural and industrial crop again.
What’s more... hemp products, including CBD products, can now be legally sold across state lines and national borders. To this point, research firm Brightfield Group says the market for CBD may grow by 40x to hit $22 billion by 2022.5 This is huge.
Our strategy to capitalize on this megatrend is multi-fold. First, Orthogonal Thinker currently owns equity in Meadow. We have invested $171K cumulatively in 3 different early rounds.
We have a commitment in place to put an additional $1 million into their series A round, which has a valuation of $40 million.
Meadow’s Point of Sale software solution is quickly becoming a dominant force in the industry. By Q2 of 2019 they expect to control 20% of the California dispensary market. In 2019, they will expand into other states and internationally as well.
Orthogonal Thinker was also one of the first investors in the seed round of Confident Cannabis, which has a current valuation of $100 Million. They are a research, testing and database trading platform for the cannabis industry.
Second, we’re currently planning a strategic acquisition of intellectual property in the Hemp/CBD space with potential 100% ownership. This will be a made on Maui line of premium quality CBD products with full vertical integration.
Longer term, we plan to acquire land in Maui for hemp cultivation, formulation and research. Beyond that, we are also looking at several other companies to invest in at various points along the
In addition, we have plans to create our own proprietary technology to build a compliance and IP Engine on the blockchain. This will set the stage for Orthogonal Thinker to play a leading role in the growth and evolution of the industry for years to come.
Psiloc... and Mental Health
Our world today faces a Mental Health crisis of staggering proportions. In America, over 40 million people are dealing with mental health concerns. What’s more, 6 out of 10 young people have depression and do not receive any mental health treatment.
Across the globe, an estimated 300 million people have depression and around 60 million people suffer from bipolar disorder.
This is just the tip of the iceberg.7
The cost of this crisis is mind boggling.
A report issued in 2018 by The Lancet Commission states that mental health disorders could cost the global economy up to $16 trillion by the year 2030 if the problems are not addressed.8
The report was put together by a team of 28 global specialists in fields such as psychiatry, public health and neuroscience. It goes on to say the growing crisis could cause lasting harm to people and communities worldwide.
From my point of view, this crisis is totally unacceptable... and completely avoidable. It is an affront to all that is decent and good and noble about our human family.
The list of mental health conditions which I believe can and should be addressed before this crisis grows any worse includes:
Anxiety Disorder, ADHD, Bipolar Disorders, Depression, Eating Disorders, Post-traumatic Stress Disorder(PSTD) and Substance Abuse Disorder.
I truly believe this crisis can be averted... and this is where Empathoceuticals come in. I will even go on record as saying I know this crisis can be turned around.
Empathoceuticals are the next generation of plant medicines derived from Nature’s garden of medicinal plants, fungi and herbs.
The proper use of these products could lead to the healing of mental health disorders... and a renewal of the human spirit... more quickly than we might imagine.
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Orthogonal Thinker plans to pioneer this new category of supplements, herbal remedies and plant medicines over the next 10 years.
What’s more, we plan to be on the leading edge of research via our relationships with Academic and Scientific Institutions, along with our own research lab on the island of Maui.
Our strategy is two-fold as we position ourselves to be in front of this new wave of investing opportunity.
What’s more, investors who join us on this journey will have the reward of being part of a healing movement with the potential to benefit millions of people across the globe.
First... Orthogonal Thinker is looking to partner with those at the forefront of research into the use of psilocybin for the treatment of mental illness.
This may include investing in both private and public companies and/or partnering with institutions in the field.
As far out as this may all sound... the legalization of medical psilocybin is closer than some might consider.
Oregon, Denver and California all have potential ballot initiatives in process.
Denver could vote on the decriminalization of psilocybin in May 2019 while Oregon looks to have its vote in 2020.
If any or all of these initiatives pass, the momentum will shift in a big way. I believe it will happen in a shorter timeframe than it took to legalize Medical Marijuana.
What gets me excited is the growing number of studies which suggest psilocybin can truly help turn the mental health crisis around.
Psilocybin therapy, which combines the use of psilocybin with psychological support, has been studied since the 1950s. Research from this past decade
is even more promising.
Micro-dosing with Psilocybin has been shown to help cancer patients with depression and anxiety.
It helps relieve symptoms for people who experience cluster headaches. It can be used to treat addiction, and it could be an alternative to typical depression treatments.
Psilocybin could also help people overcome drug, alcohol, and nicotine addictions.9
In 2018, researchers from Johns Hopkins University recommended that psilocybin be legalized for medical use. They suggested it be reclassified from a Schedule I drug to a Schedule IV drug, which is similar to prescription sleeping pills.10
Past and present research combined suggests that micro-dosing with psilocybin could be the Holy Grail for treating mental disorders.
Just as I foresaw the Cannabis wave over a decade ago... I’m just as confident in my prediction of this next wave of Empathoceuticals.
This brings me to the second part of our strategy to dominate this emerging niche.
Orthogonal Thinker owns the domain psilocibin.com, along with several other industry-related domains.
This primary domain in and of itself could appreciate in value significantly as the market evolves.
Our plan is to build psilocibin.com into a leading internet portal.
This site will showcase scientific and academic research about the medical benefits of psilocybin in the treatment of mental health disorders.
It will also provide up-to-date news covering all things mental health. As the industry matures, we will find ways to monetize the site and the information we collect.
ORTHOGONAL THINKER: OUR FINANCIAL STRUCTURE
As the data as shown, the treatment of mental health is in dire need of innovation.
In addition to the stats mentioned above, The National Institute of Mental Health estimates that 9% of the U.S. population suffers from personality disorders including depression, schizophrenia, bipolar disorder and others.11 This needs to change.
Our vision is clear and our roadmap for this journey is set.
The opportunity here to make a difference over the next 10 years is huge...
And Orthogonal Thinker plans to lead the charge.
https://www.esquire.com/lifestyle/health/a25794550/psilocybin-mushrooms-legalization-medical-use/ 11 https://www.bdo.com/insights/industries/healthcare/behavioral-health-a-market-ripe-for-growth
Let... talk next about our financial structure and business model.
Orthogonal Thinker is set up as a Holding Company, or “Hold Co.” for short. There are a number of key benefits to you as a potential investor with this kind of financial structure.
Now in case you may be wondering, “Why a holding company, David?” ... let’s take a look at how this type of financial structure works.
A holding company is a type of firm which owns controlling interest in other companies, including wholly-owned subsidiaries, instead of engaging in operating activity itself.
Perhaps the best known Hold Co. is Berkshire Hathaway, which is Warren Buffet’s holding company. Buffet is renowned for building enormous shareholder value over time as shown in these two charts. The first chart shows how the share price has appreciated since 1980:
As you can see, the price of a single share of Berkshire Hathaway has seen astronomical growth. At the end of 2018, it was nearly $300,000 per share.
Relative to the S&P index, Berkshire’s growth has been equally mind=blowing. This next show shows how the stock has risen 1,000,000% between December 1964 and December 2015. By comparison, the S&P 500 increased by about 2,300% over the same timeframe.
Bottom line... the holding company model is built for the long term. It is used by some of the most successful companies in the world, not just Berkshire Hathaway.
Other examples of well-known holding companies include Alphabet, which owns Google and a number of Google subsidiaries. Similar to Orthogonal Thinker, the Alphabet portfolio includes companies in technology, life sciences, investment capital, and research.
Amazon and Alibaba are also holding companies, each of which is big in the eCommerce space. These companies also have investments in entertainment, analytics and robotics.
Another famous Hold Co. is Walton Enterprises, LLC, which owns the majority share in Wal-Mart. It also owns other subsidiaries including newspapers and banks.
The key distinction for Orthogonal Thinker is this... we are a Socially Conscious Holding Company. As I shared at the beginning... it’s about The New Standard of Farma. It’s about whole foods, plants medicines and other products which nourish the body, mind and soul.
This is the leading edge of investing opportunity over the next 10 years and beyond.
We are also creating a new standard of investing. As a Hold Co. we reinforce and support a shared mission to create positive impact in our world. By virtue of our ownership stake, we have greater control to accelerate the growth of companies aligned with our vision.
To this end, we empower our portfolio companies to maintain a long-term focus through access to capital and protection from losses.
Here is another key distinction...
We focus on creating both horizontal and vertical integration in the industries we are investing in. For example, we create horizontal integration by purchasing a large equity stake within a certain market sector like Cannabis and Hemp.
This strategy allows us to go into a market and dominate that market for years to come through our various holdings.
We also create vertical integration by purchasing businesses in various stages of a product’s lifecycle. In other words, we look to have an interest in suppliers, distributors, wholesalers and retailers within a given industry.
The goal of our strategy is to create a diversified portfolio of companies within the core industries we invest in. The operating efficiencies this creates helps make Orthogonal Thinker a less risky investment than companies operating in a single market or niche.
In other words, our Hold Co. model benefits our shareholders because we own equity in multiple companies. This helps reduce the risk of any single company not performing.
So how does Orthogonal Thinker make money and at the same time... how else does this Hold Co. structure benefit you, the investor?
To begin, we invest in and partner with companies for up to 50% equity stake in their business, in return for capital and our services.
We do this in order to achieve consolidated cash flow and yearly returns. For example, if one of our 50% equity stake partners earns $1M in annual net profits, Orthogonal Thinker would receive $500,000.
With this in mind, we look for companies where we can acquire the following three things:
Tangible Assets and Intellectual Property
The company must have tangible assets and real intellectual property (IP). This gives us better odds at higher returns than simply investing in capital assets alone.
To be clear, revenue is important. That said, the majority of companies which get valued at over $1 billion (Unicorns) will always have great tangible assets and great IP... even when their revenues are on the low end.
Take a company called Tilray for instance. Tilray had about $45 million in revenue through 2018 and yet they have a market cap of $6.55 billion.
Here’s the thing... there are certain sectors, like the ones that Orthogonal is invested in, which see enormous multiples in valuation even with
Meadow is a great example of a company Orthogonal owns equity in. They will do $20 million in revenue by 2021, and this will put them on the low side valuation of $1 billion.
It’s all about the niche along with the tangible assets or IP the company controls.
As mentioned above, revenue and income are important. Ideally, the companies we invest in will have operating income on the books. If they are an early stage startup, we want to see a viable roadmap which will lead to positive operating income.
With this in mind, we look at EBIT (Earnings Before Interest and Taxes), because it is an indirect measure of efficiency. The higher the operating income, the more profitable a company’s core business is.
On the other hand, we don’t look at EBIDTA (Earnings Before Interest, Taxes, Depreciation and Amortization). This is because we don’t want to invest in businesses which have high depreciable assets, like equipment.
What’ more, when a company has good operating income we can usually go in and immediately help boost their income.
In addition... a big part of our vetting process is to invest in companies with the right team in place.
When a company has operating income or a solid plan to create revenues, this usually correlates to having a strong team.
In addition, when a company is operating in the black, we will participate in the yearly returns. This allows the investors in Orthogonal Thinker to potentially receive a dividend as well as
Owning equity of up to 50%... and sometimes acquiring a company outright... is the cornerstone to our success. Keep in mind, our team has been investing in and building companies for over 20 years. We have an existing track record of success.
By owning a significant amount of equity in a company, we can take our expertise, industry contacts, and investment capital to incubate and accelerate that company’s growth. It also incentivizes us to fully integrate these companies into our national and global conglomerate.
By now, you have a better understanding of how a Holding Company operates... and why investing in a Holding Company can make good financial sense. Let’s next look at how you can potentially profit when you invest in Orthogonal Thinker.
The first path to profit is liquidity through exits.
Remember, our goal is to find great companies which we believe are either undervalued... or are disruptive companies with great odds of success.
We then work to help these companies achieve massive acceleration in their growth. As I’ve shared, we’re looking for investing opportunities with the potential of 10x or more.
To this end... we can help the companies in our portfolio a) exit through a merger or acquisition with a publicly traded company or b) we can help them go public.
This is where our investors make an immediate windfall of profits by cashing in on our capital appreciation. While our core strategy is to hold companies for the long-term, there are times when this strategy is a viable option.
The second path to profit is through paying dividends.
Our consolidated cash flow model provides for yearly returns that come into Orthogonal Thinker. This cash flow can either be reinvested or we can opt to pay a dividend.
At times it makes the most sense to reinvest in R&D, marketing and sales or other avenues to greater profits. At other times, the importance of paying dividends to investors takes precedent. In this way, you can receive passive cash flow.
ORTHOGONAL THINKER: OUR FAMILY OF COMPANIES
Our dividend process is analyzed on a quarterly basis.. and we do what’s best in the interests of all our shareholders.
One more thing... and this is important. Our diversified portfolio of holdings helps reduce risk for you as a shareholder. It’s a dynamic financial structure that allows you to indirectly own a piece of multiple companies. We make the bets... you share in the winnings.
Our motto is simple. We empower the companies in our portfolio to help all our shareholders build wealth. In truth, our investors are “Ohana” ... which means “family” in Hawaiian.
And we take care of our Ohana.
The journey to this point in time began with thousands of little and big steps along the way. I’m happy to say that today... we start anew on an even grander and more noble mission.
Over the last 15+ years, we’ve made 120 investments in both startup and later stage companies.
We thrive on propelling passionate entrepreneurs move their companies from seed to growth stage. We help them incubate, execute and accelerate the growth of their vision and business roadmap.
Our socially conscious investment framework identifies specific start up opportunities which resonate with our core values... and which have the potential for unicorn success.
With later-stage businesses, we look for companies with balanced and bold strategies which can have a global impact. These are companies we help scale to new heights and reach.
My partner Jason Hobson and I started on this journey with our own money when we created Reinmkr. Orthogonal Thinker now owns 100% of Reinmkr. I’m also happy to report we have rolled up all our Reinmkr investments under the Orthogonal Thinker banner.
Currently then, Orthogonal Thinker has investments in 28 companies. Among these, we have invested in multiple companies each valued at over $100 million.
What I’d like to do next is list out a few of the companies which are part of our portfolio of holdings. These are among the brighter stars in the Orthogonal Thinker universe... though each of our investments shines in their own right.
Meadow — I mentioned Meadow earlier in this report. They market an all- in-one cannabis dispensary Point of Sale (POS) software system and medical marijuana delivery app. We recently invested in their $2.2 million seed round at Y-Combinator in the winter of 2018. We will be adding to our holdings in Meadow by deploying $1 million in capital during their upcoming $50 million private Series A round.
Meadow processes over $250 million in Cannabis transactions in California alone. They are already a profitable company with cash in the bank. What’s more, they will be expanding their reach throughout California and eventually into other states in 2019 and beyond. We believe Meadow is on its way to a $1 Billion valuation within the next 36 months.
Betterment — Betterment is the largest online financial adviser currently managing $20 billion in assets. They are on track to manage $100 billion in assets within the next 36 months. We were one of the first investors... and Betterment is now valued at over $1 billion.
Vidyard — Vidyard is a video platform company which helps businesses drive more revenue through the strategic use of online video. They are now valued at over $100 million.
RideCell — A mobility platform that provides the technology for customers to launch, brand, and scale their own standalone rideshare and carshare operations. RideCell is also valued at over $100 million.
Confident Cannabis — Confident Cannabis is a resource for essential lab testing to the industry. Their online portal helps track product consistency and quality over time. Products with the Confident Cannabis label on it build loyalty and confidence which benefits consumers of all ages and needs.
Surya Spa — The premier Ayurvedic Spa in America. They provide authentic Ayurvedic treatments, products and programs for life extension, vibrant health and total well-being. Surya Spa offers world-class services and is poised to become the ultimate Ayurvedic brand in America.
G Randall & Sons / Randy’s Remedy — G Randall & Sons is a producer and seller of dietary cannabinoid ingredients. Their premier brand is Randy’s Remedy which is powered by Cannaka. Cannaka is a proprietary blend of hemp and other botanical extracts unique to the industry.
Cannaka promotes a healthy inflammatory response, supports the central nervous system, and helps boost the body’s natural Endocannabinoid system.
The Randy’s Remedy product line includes tinctures, lotions and creams along with other products soon to be released. We are in the process of plugging the G Randall & Sons family of products into Meadow and other large retailers within the Whole Foods industry. With the passage of the Farm Bill in 2018, we expect new doors will open up for distribution as well.
Maui Raw — As I shared earlier, Orthogonal Thinker owns 100% of the Maui Raw brand. Maui Raw is a vegan, non-GMO, raw-foods producer. Maui Raw makes health food delicious. Our vegan spreads do not make you choose between healthy and tasty. We use all natural and organic ingredients, coupled with probiotics, to create a versatile part of any meal.
Our customers love Maui Raw and use our products as dips, sauces, condiments, and even desserts. As we’ve seen, vegan, non-GMO, non-dairy and Whole Food products are becoming mainstream. The trend line is up for this next decade and beyond.
In the midst of all this, Maui Raw is positioned to become a major player in the market.
Capital is being deployed to expand our volume and reach. For one, we have invested in a larger processing facility and innovative packaging technologies. This will allow our products to ship to all domestic and international markets.
In addition, we are in talks right now to get the Maui Raw brand in major retailers like Whole Foods, Trader Joes, and many others. We’ll be launching in the California market in early 2019... and then we plan to expand across the U.S.
THE INVESTMENT OPPORTUNITY AND OUR ROADMAP AHEAD
Maui Raw will be our global brand in this space for the next 10 years.
Our mission is to help people make a conscious choice to put the right foods in their body... without fillers or buffers. We know the amazing benefits which can happen when they do.
Maui Raw is on it’s way to becoming a $100 million company. Best of all, we source our ingredients locally to guarantee quality and to keep Hawaii farming strong.
Orthogonal Thinker believes that making money and doing good are not mutually exclusive. On the contrary... doing good is the foundation upon which lasting wealth is built.
In today’s world, there is a deep need for health and healing across all spectrums of human life. Stressors of many different kinds are taking their toll on our bodies, minds and spirits.
We believe people can be healed by whole foods, life sciences and plant medicines... which is why we are focusing our energies in these areas.
What’s more, we believe the cultivation of hemp is going to revitalize U.S. agriculture. This in turn will create thousands of new cannabis companies and jobs all over the country.
The health benefits of Cannabis and Hemp-derived products are well- documented. These industries will go mainstream in a big way over the next 10 years. The market for Whole Foods speaks for itself... and will likewise continue to grow in a big way as well.
We will be investing in companies which will help propel industries forward. Using our deep industry knowledge, we will deploy capital into the Life and Plant Science space where we can have the most impact.
Our focus is on innovative brands, compliance and financial support software along with farming, manufacturing and blockchain technologies. At the same time, we know how to avoid the bad actors who flock to any emerging industry.
By focusing on solid companies with high market share and revenue growth potential, we are confident Orthogonal Thinkers' holdings will grow rapidly. As a result, shareholder value will increase as well.
In essence... when you invest in a holding company, you own equity in a diversified portfolio of companies. It’s like owning a piece of each of the multiple companies.
This investment approach can yield significant growth and appreciation of value... similar to what Berkshire Hathaway and other major holding companies have seen. What’s more, we are a Socially Conscious Holding Company, which means we invest in companies which contribute to our common good.
1. We buy more equity in these companies through Orthogonal Thinker directly. 2. We help them do their own equity raise through various funding platforms
and through our venture capital connections.
3. We may launch a new fund specifically for investing in the growth round of a particular company.
At Orthogonal Thinker... We Think Differently.
We look at our portfolio of holdings as if it were a self-contained ecosystem. We maintain a balance of companies at different maturities...and across multiple segments of the industries we invest in. It’s a holistic approach that yields dividends.
For example, we provided coaching on strategies during incubation which encourages sustainable growth.
Our goal is to reward both the companies and their investors at all stages of the life cycle.
We partner with companies and investors who not only believe in their products... they want to lead and dominate their respective markets around the world.
To this end... we help accelerate the growth of new companies we add to our portfolio by connecting them into the network of companies that are already in our portfolio.
When we invest in a Cannabis or Hemp product company, we connect them into our network of dispensaries powered by Meadow. This can accelerate growth rapidly.
In addition, as one of our portfolio companies grows... we help them raise additional capital if necessary. We do this in three ways:
Our Current Raise
Our Roadmap To Liquidity
Remember... we always look at the good a company can do in our world before we decide to invest. It’s a shared intention amongst founders and shareholders. This has power.
What’s more, we carefully consider the 3 protocols of Socially Conscious investing at each step of our vetting process. Once a company passes our test, we will then negotiate to acquire equity, or potentially acquire that company outright.
As an investor into Orthogonal Thinker, you will know you are supporting the right kind of companies... the kind that serves both individuals
This is how we create long-term shareholder value... and this is how we play our part in creating a better world for our children and their children.
Our current Round A raise of $10 million will fund new investment into future Orthogonal Thinker portfolio companies.
These monies will also be used to accelerate the growth of the companies currently in our portfolio. The remainder of funds will be used for operations, expenses, and future investment opportunities.
Our current valuation of $21 million will be for the first $2 million of investor monies received.
As mentioned earlier in this report, one of the ways we reward investors is through dividends. These are paid directly to investors through the profits generated from the companies we invest in.
Our commitment is for the long haul... and we feel it is important to reward investors accordingly. That being said, we also understand the need for
liquidity in our investments.
Who Is This Investment Opportunity For?
By the end of 2019 our plan is to either take Orthogonal Thinker public... or we will tokenize the equity by doing a reverse Security Token Offering.
We have brought on new team members who are experienced in both the IPO route and the STO route. Either of these options will provide liquidity to our early investors and allow for new investors to get involved in some exciting industries and niches.
As I’ve shared... we treat our investors as Ohana. We focus on investments which we believe have 10x and more potential returns. We want all our investors to share in the wealth. This is our corporate baseline.
Let me start by saying this opportunity is not for everyone.
You see, I believe we must each be worthy of a worthy mate. For Orthogonal Thinker, this means our goal is to attract like-minded individuals to join us on this journey.
With this in mind, ask yourself the following...
Do you want to help us create The New Standard of Farma... and make a difference in the world of health, wellness and sustainable development?
Do you want to help us create The New Standard of Farma... and make a difference in the world of health, wellness and sustainable development?
Do you want to help us pioneer the next generation of Empathoceuticals... and potentially impact the lives of millions suffering from Mental Health Disorders?
Do you resonate with the Orthogonal Creed and the values I shared at the beginning of this report? Do you consider yourself a socially conscious investor... and do you want to build a personal investing legacy you can be proud of?
Risk Disclaimers and Forward Looking Statements
Risk Disclaimers: Any financial investment involves risk. You should not invest any funds in Orthogonal Thinker unless you can afford to lose your entire investment. In making an investment decision, investors must rely on their own examination of the merits and risks involved. An investment in Orthogonal Thinker or its Securities has not been recommended or approved by any federal or state securities commission or regulatory authority. Furthermore, these authorities have not passed upon the accuracy or adequacy of this report.
The U.S. Securities and Exchange Commission does not pass upon the merits of any securities offered or the terms of the offering, nor does it pass upon the accuracy or completeness of any offering document or literature or investment report. The securities may be illiquid and may not have a secondary market. In addition, the Company may never undergo a liquidity event such as a sale of the Company or an IPO or an STO. The Securities are not equity interests, have no ownership rights, have no rights to the Company’s assets or profits and have no voting rights or ability to direct the Company or its actions. The Securities have numerous transfer restrictions and will likely be highly illiquid, with no secondary market on which to sell them. Purchasers could hold Securities for many years without income generation. The majority of investments would involve long term prospects not short term gains.
As of the date hereof, David Nikzad, our founder owns 89% of the shares of our issued and outstanding Common Stock. Even following this current round, he will still own and control a majority of our outstanding common stock. Therefore, Mr. Nikzad will be able to control our management and affairs and most matters requiring stockholder approval, including, but not limited to, the election of directors and approval of significant corporate transactions. This concentration of ownership and voting power may have the effect of delaying or preventing a change in control, which may not be in the best interest of our other stockholders.
We currently have a small management team which the Company is reliant upon. We have to retain our employees to ensure growth and success. Orthogonal Thinker's intellectual property consists of a trademark which the company obtained the usage rights to in a legal settlement. This may be of concern to future investors. Our company relies on the ability to invest in successful startups. If we are unable to source these companies then our business could suffer. Our future success depends on the efforts of a small management team. The loss of services of the members of the management team may have an adverse effect on the company. There can be no assurance that we will be successful in attracting and retaining other personnel we require to successfully grow our business.
Forward Looking Statements: The statements contained herein may contain certain forward-looking statements relating to Orthogonal Thinker that are based on the beliefs of Orthogonal Thinker’s management as well as assumptions made by and information currently available to the Orthogonal Thinker management. These forward- looking statements are, by their nature, subject to significant risks and uncertainties. These forward-looking statements include, without limitation, statements relating to Orthogonal Thinker’s business prospects, future developments, trends and conditions in the industry and geographical markets in which Orthogonal Thinker operates, its strategies, plans, objectives and goals, its ability to control costs, statements relating to prices, volumes, operations, margins, overall market trends, risk management and exchange rates.
When used herein, the words “anticipate”, “believe”, “could”, “estimate”, “expect”, “going forward”, “intend”, “may”, “ought to”, “plan”, “potential”, “project”, “seek”, “should”, “will”, “would” and similar expressions, as they relate to Orthogonal Thinker or Orthogonal Thinker’s management, are intended to identify forward-looking statements.
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